By: Michael J. Fleming, CMI
When the Wayfair case was decided by the U.S. Supreme Court, the physical presence requirement for sales tax nexus was eliminated, paving the way for an economic nexus for sales tax. South Dakota, the state involved in the Wayfair case, believed that a substantial nexus could be created simply by having sales into South Dakota that exceeded $100,000 or 200 transactions. Many states saw the Supreme Court’s decision as an approval of the thresholds and rushed to implement and enforce their own thresholds identical to South Dakota. Minnesota even went live with a 100 transaction threshold. However, are states beginning to rethink transaction thresholds?
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